National Telescope national telescope newspaper
In a bid to streamline and stabilize foreign exchange market in the country, the Central Bank of Nigeria (CBN) has rolled out a revised regulatory framework for Bureaux De Change operations, stipulating that sellers of foreign exchange amounting to $10,000 and above, must declare the sources of their forex.
The regulatory overhaul, according to the CBN , aims to reduce excesses within the BDC sector and instill stability in the forex market.
With the new regulatory framework, BDC operators are now obligated to adhere to Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) regulations and comply with existing foreign exchange laws and regulations.
This move signifies a strategic step by the CBN to bolster the regulatory landscape governing BDC operations, aligning with broader reforms within the Nigerian foreign exchange market.
Key highlights of the revised guidelines encompass adjustments to permissible activities, licensing requirements, corporate governance standards, and AML/CFT provisions tailored for BDCs.
The CBN new guideline also stipulates that the capital requirements of tier 1 BDCs with a national license stands at N2 billion while tier 2 BDCs operators expected to have a minimum capital of N500 million.
The CBN said Tier 1 BDC, expected to have a minimum of five board members and a maximum of nine members while tier 2 should have only 7 board members.
The apex regulator said that the guideline provides for gender equality, as a board cannot be constituted with only one gender
(Blueprint)
